Specialization and trade are beneficial to society because:
What will be an ideal response?
-a division of labor lowers prices for products.
-the output of economic goods may be increased with no increase in resources.
-scarce resources are utilized more efficiently.-
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A firm built an inventory of 16-bit chips for $50,000 last year. However, the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now
What is the opportunity cost of the inventory of 16-bit chips? A) $50,000 B) $40,000 C) $10,000 D) $90,000
The fact that someone with information about a significant number of illnesses in their family history is likely to purchase health insurance is an example of
a. adverse selection. b. monitoring. c. moral hazard. d. screening.
Refer to the information in the table. The amount of currency held by the public ________, and the amount of reserves held by banks ________. It must be the case that, in 1932, the Federal Reserve ________. Currency held by public (in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. increased; also increased; increased the discount rate B. decreased; also decreased; kept the rate of inflation low C. increased; also increased; injected reserves into the economy D. decreased; increased; performed open-market operations
Written and recorded works, ideas, formulas, and other creative intangible property that are owned by an individual or a group of individuals are examples of the economic concept of
A. intellectual property. B. personal effects. C. physical capital. D. public property.